21 ATTACHMENT 13 - Laserfiche WebLink

CONFII)i~;.\'I'IAI. & YR:IIIII,I~GL~I) ~!~-ORii PRQI)L'CT Regency Centers -Pleasanton Fiscal Analysis Memo October 8, 2007 Page 4 of 17 City's projection of $20,000 in business license tax is close to Kosmont's estimation of $22,120 based on 0.03% of annual gross receipts from the Project's retailers. The difference stems from the PSF sales approximations used for various retail users (See Appendix D). Finding #2: City Expenditures from Proiect Kosmont estimates a range of fiscal expenditures incurred by the Project within a range of $115,000 to $193,500 by utilizing two methodologies: 1) increase of full- time equivalent City employees needed to manage expected service demand increases and 2) an incremental equation of $1 service cost increase per 1 SF of new retail development. Consultant used the same methodologies as the City Analysis to calculate fiscal expenditures. However, based on experience analyzing comparable retail developments in other cities and their relative self-sufficiency, Kosmont believes the fiscal expenditure impact will be closer to the lower end of the range at $115,000. Projects such as that being proposed are considered institutional quality because they are located in superior markets and are typically anchored by national credit tenants who contribute to a common area maintenance program (CAM), which in turn provides services related to safety and maintenance, disposal and other services. Either alternatively or as an augmentation to basic CAM services, certain stores within a center will hire directly for special services as related to safety patrol/internal security and maintenance of the store specific property conditions. As a result, tenants of such centers tend not to be intense users of city services, and a city's out-of-pocket costs related to services provided are more than likely to fall in the lower range of the spectrum. Finding 3: Net Fiscal Impact Kosmont estimates a net fiscal impact for the Project of between $631,740 and $710,200. This varies from the City's range of $300,000 to $375,000 based on differences in estimated PSF sales used for the Project retailers and the amount of discount applied to account for overlapping sales. Property tax estimates were also different since the City used an assessed Project value of $38.1 million. Regency's detailed pro forma now estimates assessed value of $48.1 million resulting in approximately $25,100 of additional property tax for Pleasanton. Tn+s aratyaK to for atuWative pwposea ana ra rqt a gwraMee d sGUal anNer tonne renlla. Project Vro rom+a antl tax anatysea aro I - propctbru omy. Actual rau%a may d~1Aer maleruMy from 4+oae errWe++eA ii a4a anayaa. 1{ kosman 18501 vennrca tea. Suite 811 Etrcino Ca6lomie 91 s]6 oha+e.991.a+s~ fez 818,981.8888 www,koertwM.tam